The Cambro Foundation, a nonprofit organization, is planning to invest $104,950 in a project that wl vill produce net cash inflows as follows: Year 1 $30,000 $40,000 Year 2 Year 3
The Cambro Foundation, a nonprofit organization, is planning to invest $104,950 in a project that wl vill produce net cash inflows as follows: Year 1 $30,000 $40,000 Year 2 Year 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 12-12 Uncertain Cash Flows (LO12-4]
The Cambro Foundation, a nonprofit organization, is planning to invest $104,950 in a project that will last for three years. The project
will produce net cash inflows as follows:
Year 1
$30,000
Year 2
$40,000
Year 3
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3?
Net cash inflow
Graw
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Transcribed Image Text:Saved
Exercise 12-12 Uncertain Cash Flows (LO12-4]
The Cambro Foundation, a nonprofit organization, is planning to invest $104,950 in a project that will last for three years. The project
will produce net cash inflows as follows:
Year 1
$30,000
Year 2
$40,000
Year 3
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3?
Net cash inflow
Graw
< Prev
3 of 6
Next >
10
tv
MacBook Air
80
88
DII
DD
F2
F3
F4
FS
F6
FB
F9
F11
23
2$
%
)
+
1
3
4
6
7
Q
W
E
T
Y
U
{
A
D
F
H
J
C.
V
B
M
<>
.. ..
* 00
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